India’s framework for responsible business began with the National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business (NVGs) introduced in 2011. These were later upgraded to the National Guidelines for Responsible Business Conduct (NGRBC) in 2019 to reflect evolving global and domestic sustainability trends. The Companies Act, 2013 has embedded the principles of Environmental, Social, and Governance (ESG) into its structure by extending the duties of companies and their boards to include stakeholder-centric responsibilities. Key ESG aspects such as energy conservation, appointment of women directors, maternity benefit disclosures, and corporate social responsibility are mandated in board reports and financial statements, with compliance overseen by company boards. Stakeholder consultation remains a cornerstone in any policy formation by the government.
Policy Framework: From NVGs to NGRBC and Companies Act Integration
